Application of Designing a Control System
Gina realizes her unit needs to make some changes in its control system. However, she is uncertain which will work best for her organization. They are just one unit among five. She could base her unit's performance on their distinct product, and turn her unit into a profit center and evaluate against the company total. She could also use more heavily the rules, policies, regulations, and procedures already in place. She has not strictly enforced many of the regulations established by the home office. Part of the reason for this is that her unit is fairly self- regulating. The work groups set their goals and insure those goals are attained. Little latitude is allowed for a worker who does not meet the group norms.
-If Gina looks at her unit as a profit center, which form of control will she be using?
A)market
B)regulated
C)bureaucratic
D)clan

Question

Quizplus · Accepted Answer

Turning her unit into a profit center and evaluating it against the company total is an example of market control, which uses external market mechanisms to establish standards of performance.